// Index Comparison

ACCE Defense & Aerospace vs ACCE Semiconductors

Head-to-head: performance, risk profile, and constituent overlap between two ACCE indices.

Defense contractors and tier-1 suppliers with >40% defense revenue exposure. Focuses on prime contractors, subsystem suppliers, and munitions companies benefiting from multi-year budget cycles and replenishment demand.

ACCE Semiconductors →

The full semiconductor value chain — from chip design through fabrication to equipment. Cyclical upswing meets structural AI demand.

Performance windows

Period	ACCE Defense & Aerospace	ACCE Semiconductors	Spread
1M	-4.9%	+34.9%	-39.8%
3M	-11.3%	+19.6%	-30.9%
YTD	+2.1%	+33.3%	-31.2%
1Y	+2.1%	+33.3%	-31.2%
3Y	+2.1%	+33.3%	-31.2%
5Y	+2.1%	+33.3%	-31.2%
Inception	+2.1%	+33.3%	-31.2%

ACCE Defense & Aerospace — risk

Volatility 30d+22.3%

Volatility 90d+25.7%

Sharpe 90d0.23

Max drawdown-17.4%

Beta vs ITA0.47

ACCE Semiconductors — risk

Volatility 30d+39.1%

Volatility 90d+36.9%

Sharpe 90d2.59

Max drawdown-13.9%

Beta vs SOXX2.09

Constituent overlap

0 stocks held by both indices (out of 7 and 11)

Top sectors — ACCE Defense & Aerospace

Industrials100.0%

Top sectors — ACCE Semiconductors

Technology100.0%

ACCE Verdict

**ACCE Semiconductors has crushed ACCE Defense & Aerospace since inception, delivering 33.28% returns versus just 2.1% for defense stocks.** The semiconductor index has generated this outperformance despite carrying significantly higher volatility at 36.9% versus 25.7% for defense, though its Sharpe ratio of 2.59 versus 0.23 shows the extra risk has been well-compensated.

**The defense index offers lower volatility and a defensive beta of 0.47, while semiconductors run hot with a 2.09 beta that amplifies market moves.** Defense's maximum drawdown of -17.4% was actually deeper than semiconductors' -13.9%, suggesting the AI boom has provided better downside protection than traditional defensive characteristics.

**These indices share virtually no overlap, representing distinct corners of the technology ecosystem.** Defense focuses on government contracts and multi-year budget cycles, while semiconductors ride the structural AI wave and cyclical recovery.

**Semiconductors suit growth investors willing to stomach high volatility for explosive returns, particularly those betting on continued AI infrastructure buildout.** Defense appeals to conservative investors seeking lower correlation to broader markets and steady government spending, though recent performance suggests even defensive positioning hasn't delivered the expected stability or returns.